Nominal GDP Will Grow Slower Than Real GDP Only When

question 150

True/False

Nominal GDP will grow slower than real GDP only when there is deflation.

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Definitions:

Par Value

The nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may not reflect its market value.

Stock Split

A corporate action to increase the number of shares outstanding by issuing more shares to current shareholders, often to make the stock more affordable to investors.

Market Price

Market Price refers to the current price at which an asset or service can be bought or sold in a marketplace.

Dividend Per Share

The total dividends declared by a company for each share of common stock owned.